Financial Asset @ May 2015

Greetings....

We firmly believe next six months will be the period when market will consolidate. The ongoing corrections do not change our long term positive views.

Lower crude prices, falling Interest rates & proactive govt. policies will provide enough impetus for growth in long term. One should capitalize these opportunities by incrementally investing for long term.

However, volatility will continue in near term till,

·         earnings growth is muted

·         credit growth is low & capex cycle does not revive

·         lower rates are not transmitted onwards by bank.

In line with same & also from market capitalization point of view, we continue recommending large cap fund which are more attractive than mid-cap ones. Mid-caps are recommended post 5 years of time horizon….

IT sector looks quite attractive since the kind of beating it has taken in last few trading weeks. With appreciation of INR against euro seems to have ended & growth prospect being intact tactical advantage could easily ascertain in this segment from long term perspective.

Debt market would be further streamlining with the stabilization of exchange rates & no sooner than later banks will start passing on the benefits to the borrowers. This in itself will be sufficient reason for the returns to be in healthy territory.

Thanks & Regards

Kajal Gupta

I2isolutions.org

9830293134